ANSWERS: 2
  • There are so many ways to play them, because there are so many ways to create them. You can record audio in wav, mp3, wma, etc. And you can record video in wmv, mpg, avi, mov (quicktime), mp4 (iPod), umd (PSP), dvd, flv (flash), etc. . I agree, there are too many formats, but you can get rid of most of the confusion if you have something like Magic Video Converter.
  • There are a lot of formats because a lot of people have their own idea of what makes an efficient encoding / decoding method. Part of the reason for this is the platform involved. New formats were invented to fit video onto CD-ROMs, cell phones, portable video players and most importantly, online. Videos download much faster online when they're smaller in size.

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